Are you stuck in your home?
Real estate isn’t flying off the shelves anymore. Some owners find that it can be very expensive and painstaking to own an unwanted house. Home owners who can’t sell their homes because of the poor economy are very unhappy to be doing repairs and upgrades that they hoped would be a new home owner’s responsibility. Others are unhappy living in a home that costs to much or doesn’t meet their needs. For now, some homeowners are stuck.
Many home owners that have given up selling, or refuse to sell their home because of the risk of losing too much money on the sale, have started redecorating, landscaping, and remodeling the home. Some are doing these projects because they have given up on selling and have decided to make their home more enjoyable to live in; others are making improvements to prepare their home for the market at a later date.
Fewer people moved in ’08
The number of people that moved into another residence in 2008 was the lowest number since 1962, according to the U.S. Census Bureau. About 35.2 million people moved in 2008, that’s down from 38.7 million in 2007.
This statistic could mean that many people are living in houses that they and their families have outgrown. These families may have children and family members that moved out, and now the families are stuck in homes with too much space. The low number of people moving residences is also a sign of the times, many Americans stayed away from real estate in ’08 waiting for signals of an improving market.
Upgrade and remodel to compete better
Re-modelers are saying that home improvements are becoming less elaborate than they were in past years. Individuals taking on bathroom or kitchen remodels have been completing the projects in phases. They are even replacing individual items, such as counters and fixtures, instead of deciding to overhaul an entire room.
Some individuals that have decided to sell their homes, and are waiting until the market gets a bit better, are doing upgrades to try and compete better. These owners are completely remodeling their kitchens, their bathrooms, their floors, lawns, patios and laundry rooms; some are even painting the interior and exteriors of their homes and garages to increase the value of their homes. All of these upgrades give a home more value and help it “stick out among the clutter”, a remodeled home has a better chance of selling because many buyers don’t want to get stuck with a home that needs repairs.
Some can’t sell, so they rent
Often, those who can’t sell their homes resort to renting the home out. This isn’t usually in their best interest if they are concerned with the costs of regular maintenance and repairs. In addition, homeowners that are stuck with bad loans, or no equity, may have a hard time making ends meet if the rent doesn’t cover the full price of the mortgage. It may be best to stay in the home and stick it out.
Took my a year and a half to shortsale my home. My value dropped $150,000 in two years. I stopped wasting my money on a home where I would never break even in 10 years. Cheaper to rent.